Voxx loses $4.7M due to settlement, acquisition

Due to charges related to a patent infringement lawsuit and a recent acquisition, Voxx International reported a $4.7 million first quarter net loss down from a $2.5 million profit a year ago, even as sales rose.

The Hauppauge-based firm said sales for the quarter ended March 31 rose 17.4 percent to $194 million, boosted by a 15.5 percent increase in electronics sales to $152.8 million. The surge was largely due to $36.6 million in revenues from Hirschmann, which the company acquired on March 14.

Even though Hirschmann drove up revenue, $2.7 million in costs related to the acquisition helped push Voxx into the red. The firm’s bank charges also rose due to costs related to a credit facility used to fund the acquisition.

Voxx took an $8.4 million charge to settle a patent infringement lawsuit, although the firm also scored a victory related to litigation. Voxx in the quarter obtained $800,000 in a counterfeit settlement related to Klipsch.